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Pigovian tax

A Pigovian tax is a tax enacted to correct the effects of negative externalities; they are named after economist Arthur Pigou. Unlike most taxes, which are inefficient because they result in a deadweight loss, Pigovian taxes improve overall economic efficiency. Examples of Pigovian taxes include taxes on alcohol, cigarettes, and gasoline.

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Referenced By

Arthur Pigou | Excise tax | Taxation | Taxes

 

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This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Pigovian tax".

 

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